Chapter 15

Question 1

Voluntary consent

Answer 1

Voluntary agreement to a proposition of an act of another. A concurrence of wills.

Question 2

Mistakes of fact

Answer 2

Bilateral and unilateral

- make the contract voidable

Question 3

Mistake of value

Answer 3

wanting to take it back after finding out the real value

Question 4

Unilateral mistake

Answer 4

Made by only one of the parties
- normally the contract is still enforceable
Exceptions: 1. If the other party should’ve known it was a mistake
2. The error was mathematical

Question 5

Bilateral mistake

Answer 5

Made by both parties

- can be voidable

Question 6

Fraudulent misrepresentation

Answer 6

1. A misrepresentation of a material of fact must occur
2. Intent to deceive
3. Innocent party justifiably relied on it
4. Party must be harmed

Question 7

Latent defects

Answer 7

A defect that is not obvious or cannot readily be ascertained
- not easily discovered

Question 8

Scienter

Answer 8

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive
- also if you make a statement recklessly without regard to whether it is true or false

Question 9

Innocent misrepresentation

Answer 9

A false statement of fact or an act made in good faith that deceives and causes harm or injury to another

Question 10

Negligent misrepresentation

Answer 10

Making a representation through carelessness believing the statement is true
- in most states it’s equal to scienter

Question 11

Adhesion contracts

Answer 11

A standard form contract such as that between a large retailer and a consumer in which the stronger party dictates the terms